Peter decides to put a collector clock up for sale via an auction process.

He intends to place an advertisement in the local newspaper to inform interested parties about the auction. However, he is not sure how the contract of sale would be concluded during the auction process.

Specifically, Peter is concerned as to whether the bidder may change his mind and back out after submitting a bid. He wants to know when is the exact point in time in the auction process that he and the winning bidder would become legally bound to the contract of sale.

Explain how and when the contract will be formed in this scenario between Peter and the winning bidder during the auction process. You should also explain the legal significance of the advertisement that Peter will place in the local newspaper.